Why do you advise early-stage startup founders against opening their own manufacturing facilities?
Replied byAllison Ellsworth
Co-founder at Poppi
Niche: Retail
Revenue: Approx. $42 Million/month
Location: Austin, Texas, United States
Started: 2015
Opening our own manufacturing plant was a massive capital drain that consumed our resources. Unless you have no other choice, startups should avoid manufacturing and use co-packers. While managing our facility taught us how to scale our liquid, spending all your early capital on manufacturing is a major mistake.
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